Zylog Systems revenue dropped on 76.2% in 2015 while EBITDA Margin surged on 17.3 pp from -19.1% to -1.8%
30-05-2015 • About Zylog Systems (
$ZYLOG) • By InTwits
Zylog Systems reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Zylog Systems is a company in decline: FY2015 revenue growth was -76.2%, 5 years revenue CAGR was -3.3%
- The company operates at negative EBITDA Margin: -1.8%
- EBITDA Margin is quite volatile: -1.8% in FY2015, -19.1% in FY2014, 14.5% in FY2013, 18.7% in FY2012, 16.3% in FY2011
- The company has unprofitable business model: ROIC is at -15.2%
- It operates with high leverage: Net Debt/EBITDA is 1.1x while industry average is 0.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Zylog Systems ($ZYLOG) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 19,157 | 22,729 | 24,996 | 17,290 | 4,110 | -76.2% |
| EBITDA | 3,118 | 4,242 | 3,615 | -3,301 | -76 | |
| Net Income | 1,451 | 2,044 | 30 | -5,592 | -6,367 | |
Balance Sheet
|
|---|
| Cash | 1,424 | 2,005 | 860 | 296 | 271 | -8.4% |
| Short Term Debt | 4,117 | 4,954 | 7,221 | 7,618 | 8,004 | 5.1% |
| Long Term Debt | 1,570 | 2,578 | 3,130 | 3,374 | 2,152 | -36.2% |
Cash flow
|
|---|
| Capex | 839 | 1,351 | 4,578 | 90 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 293.7% | 18.6% | 10.0% | -30.8% | -76.2% | |
| EBITDA growth | 79.3% | 36.0% | -14.8% | -191.3% | -97.7% | |
| EBITDA Margin | 16.3% | 18.7% | 14.5% | -19.1% | -1.8% | 17.3% |
| Net Income Margin | 7.6% | 9.0% | 0.1% | -32.3% | -154.9% | -122.6% |
| CAPEX, % of revenue | 4.4% | 5.9% | 18.3% | 0.5% | | -0.5% |
| ROIC | 22.8% | 24.2% | 9.6% | -33.4% | -15.2% | 18.2% |
| ROE | 23.1% | 25.7% | 0.3% | -84.6% | | 84.6% |
| Net Debt/EBITDA | 1.4x | 1.3x | 2.6x | | | 0.0x |
Revenue and profitability
The company's Revenue dropped on 76.2% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin jumped on 17.3 pp from -19.1% to -1.8% in FY2015.
Net Income marign dropped on 123 pp from -32.3% to -155% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.1x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2015. Debt decreased on 7.6% in FY2015 while cash decreased on 8.4% in FY2015.
Appendix 1: Peers in IT Software Products
Below we provide Zylog Systems benchmarking against other companies in IT Software Products industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Twinstar Industries ($TWINSTAR) | | 204.5% | 59.8% | 38.8% | 40.3% |
| Atishay Infotech ($ATISHAY) | | -25.4% | 6.9% | 21.8% | 28.2% |
| Dion Global Solutions ($DION) | | 40.4% | 40.8% | -9.5% | 27.8% |
| Avance Technologies ($AVANCE) | | -11.7% | -17.9% | -30.8% | 20.3% |
| Softsol India ($SOFTSOL) | | -10.4% | 9.3% | -20.4% | 14.1% |
| |
|---|
| Median (16 companies) | | 15.1% | 17.7% | 21.8% | 9.7% |
|---|
| Zylog Systems ($ZYLOG) | | 18.6% | 10.0% | -30.8% | -76.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Atishay Infotech ($ATISHAY) | 19.6% | 35.7% | 28.1% | 25.8% | 24.5% |
| Subex ($SUBEX) | 26.8% | 27.3% | 17.0% | 24.9% | 23.6% |
| Tata Elxsi ($TATAELXSI) | 11.4% | 13.8% | 11.9% | 17.6% | 20.9% |
| Cambridge Technology Enterprises ($CTE) | | | | | 20.9% |
| Aurionpro Solutions ($AURIONPRO) | 21.4% | 15.9% | 14.5% | 12.0% | 16.9% |
| |
|---|
| Median (21 companies) | 8.1% | 7.5% | 8.5% | 10.2% | 9.2% |
|---|
| Zylog Systems ($ZYLOG) | 16.3% | 18.7% | 14.5% | -19.1% | -1.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Aurionpro Solutions ($AURIONPRO) | 15.7% | 17.5% | 12.3% | 12.6% | 13.4% |
| Mastek ($MASTKBBPH) | 4.8% | 2.2% | | 0.0% | 4.9% |
| Dion Global Solutions ($DION) | 10.7% | 39.9% | 11.9% | 29.6% | 4.0% |
| Tata Elxsi ($TATAELXSI) | 7.0% | 5.3% | 5.4% | 3.1% | 3.9% |
| Polaris Financial Technology ($POLARIS) | 5.9% | 7.2% | 2.5% | 1.5% | 3.9% |
| |
|---|
| Median (10 companies) | 5.2% | 3.1% | 4.3% | 2.7% | 3.0% |
|---|
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tata Elxsi ($TATAELXSI) | 13.2% | 22.5% | 19.1% | 38.3% | 55.4% |
| Mindteck (India) ($MINDTECK) | 6.7% | -2.6% | 1.2% | 20.0% | 17.5% |
| Blue Star Infotech ($BLUESTINFO) | | | 7.1% | 16.3% | 17.4% |
| Polaris Financial Technology ($POLARIS) | 18.7% | 19.5% | 15.1% | 12.6% | 16.2% |
| Aurionpro Solutions ($AURIONPRO) | 15.2% | 8.6% | 8.6% | 5.9% | 12.1% |
| |
|---|
| Median (27 companies) | 3.9% | 3.8% | 4.7% | 16.3% | 14.2% |
|---|
| Zylog Systems ($ZYLOG) | 22.8% | 24.2% | 9.6% | -33.4% | -15.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Subex ($SUBEX) | 4.2x | 4.6x | 13.1x | 8.5x | 8.0x |
| Dion Global Solutions ($DION) | 11.6x | 11.8x | 11.3x | | 7.4x |
| Aurionpro Solutions ($AURIONPRO) | 1.1x | 1.7x | 1.7x | 1.9x | 1.2x |
| Saksoft ($SAKSOFT) | 3.8x | 2.8x | 2.3x | 0.0x | 1.2x |
| Datamatics Global Services ($DATAMATICS) | 0.2x | 0.5x | 0.3x | 0.5x | 0.3x |
| |
|---|
| Median (18 companies) | 0.1x | 0.5x | 0.0x | 0.0x | 0.0x |
|---|
